Subscribe to our free, weekly email newsletter!

Global logistics: NCBFAA objects to pending new legislation on trade

By Patrick Burnson, Executive Editor
July 13, 2010

In a letter to House Ways and Means Committee Chairman Sander Levin and Ranking Member Dave Camp, National Customs Brokers and Forwarders Association of America, Inc. (NCBFAA) President Jeffrey Coppersmith urged them to exercise their Committee’s jurisdiction over the Foreign Manufacturer Legal Accountability Act and conduct a review to evaluate its impact on trade.

This proposal, H.R. 4678, requires foreign manufacturers whose products are sold in the U.S. to designate a registered agent for service of process in U.S. courts. Without a registered agent, the foreign manufacturer’s products would be prohibited entry into the U.S.

“When our foreign trading partners reciprocate with their own ‘registered agent’ provision, as they are likely to do, it will be very difficult and expensive for small and medium-sized companies to maintain registered agents in all the foreign markets to which they export,” said Coppersmith. “An even greater disincentive will be the exposure to litigation in these countries whose legal systems may not have safeguards and transparency as do our own.”?

In the NCBFAA’s view, it is unlikely that a foreign court would even enforce a U.S. court judgment against the foreign manufacturer making it impossible for H.R. 4678 to even realize its stated goal of holding foreign manufacturers accountable. Instead, President Coppersmith recommends relying on mechanisms already in place to address this concern.

“The legislation overlooks the fact that Customs and Border Protection (CBP), the Consumer Product Safety Commission (CPSC), the Food and Drug Administration (FDA), among other agencies, already have broad powers to seize, detain or refuse entry to defective or tainted products,” he noted. “U.S. importers are responsible to these and other agencies for the products they bring into the U.S. and are subject to potentially severe penalties for failure to comply with U.S.”

About the Author

Patrick Burnson
Executive Editor

Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at .(JavaScript must be enabled to view this email address).

Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

More than 20 U.S. port authority officials and their key staff, representing seaports from all four U.S. coasts, will gather on October 8 to meet with Congressional leadership to discuss the upcoming surface transportation bill and the U.S. Army Corps of Engineers’ navigation budget.

Companies used to compete on price and service. The future of supply chain, according to Steve Melnyk, is culture. In fact, innovators like Apple, Google, and Unilever are already leading because of their cultures. Your company can too.

As evidenced by the widening gap in the United States trade deficit, which has seen imports far outpacing exports for years on end, the September edition of the “Global Trade Pulse” from global maritime and trade consultancy Hackett Associates paints a similar picture for trade activity in North America, with some overlapping themes apparent in the report’s European data, too.

Kurt Nagle, president and CEO of the American Association of Port Authorities recently voiced his endorsement of this trade legislation

While many auto executives expect more industry recalls in 2015 and 2016, just 8 percent use advanced predictive analytics to help prevent, prepare for, and manage recalls, according to a recent online poll from Deloitte.

Article Topics

News · All topics


Post a comment
Commenting is not available in this channel entry.

© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA